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FX GLOBAL CALL: Our Take on the Day's Big FX News

By

Brian Baskin

May 14, 2013 7:34 a.m. ET

The FX Global Call covers the main news events affecting foreign-exchange markets in Asian and European trading hours, as selected by DJ FX Trader editors in New York, London and Singapore, as well as other hot spots when warranted.

1. Inflation figures coming in from around the globe show consumer prices rising at a much slower rate. In India, inflation rose 4.89% from a year earlier, down from 5.96% last month. In Hungary, the number was 1.7%, from 2.2%, its lowest since 1974. Sweden experienced deflation of -0.2%, below forecasts for 0.1%. Figures dropped in Germany and Spain as well. With inflation looking like a remote concern, central banks have a green light to continue cutting interest rates, already at record lows in many countries.

2. Spain is bringing 10-year bonds to market via a syndication. It's likely to raise something in the order of EUR5 billion, chipping away yet further at its financing needs for the year. Investors are still eager to buy, with the order book standing around EUR14 billion. That, and strong euro-zone industrial production, gave the euro a slight boost, to just under $1.30.

3. The Australian budget showed just how much government finances have deteriorated: Forget about their pledge to return to a budget surplus this year. Now the government is forecasting a return to surplus only in 2015-16. The Aussie tumbled on the news, dropping to a fresh 11-month low. In general, the budget emphasized growth over austerity as the government prepares the country for the end of the mining boom.

4. Coming up in the U.S.

7:30 a.m. EDT April NFIB Small Business Survey: 91 expected

8:30 a.m. EDT April Import Prices: -0.5% expected

(Brian Baskin is assistant managing editor for the Americas at DJ FX Trader, a foreign exchange news service jointly produced by Dow Jones Newswires and The Wall Street Journal.)

FX GLOBAL CALL: Our Take on the Day's Big FX News

The FX Global Call covers the main news events affecting foreign-exchange markets in Asian and European trading hours, as selected by DJ FX Trader editors in New York, London and Singapore, as well as other hot spots when warranted.